Help needed in interpreting brokerage fee schedule.

bhangima · #1 1st August 2005, 04:20 PM

Friends, could one of you please interpret this for me:

Quote:

From URL: http://content.icicidirect.com/maili...eeschedule.htm

The minimum value of the order that would be accepted would be Rs. 500/- and the minimum brokerage would be Rs. 25/- per trade. The minimum brokerage is Rs.25/- or 2.5% of the trade value whichever is lower. Service Tax and Securities Transaction Tax (STT) will be charged additional as per the applicable rate.

For me, the 1st and 2nd sentences are conveying different (and contradicting) meanings.

Let us consider a trade of value Rs. 600.

As per the 1st statement (the minimum brokerage would be Rs. 25/- per trade), the brokerage should be Rs. 25.

As per the 2nd statement (The minimum brokerage is Rs.25/- or 2.5% of the trade value "whichever is lower"), 2.5% of this is Rs. 15 (and it is less than Rs. 25) so the brokerage should be Rs. 15.

What is your understanding on the brokerage for 600/- trade - is it Rs. 25 or Rs. 15?

In addition to all this, the brokerage in general is 1%, they say. So what would be the brokerage for a trade of Rs. 2000? Is it Rs. 20 (1%) or Rs. 25 (min per trade) or 2.5%?

What I did not get is: When Rs. 25, when 2.5%, and when 1%? May be I did not read something clearly in the website, and hence I gave the URL above in this post in case you would like to go through.

I know I can ask this question to the customer service folks, but somehow I was never satisfied with the knowledge levels the customer representatives they exhibited in my earlier calls. Thanks in advance.

bhangima · #2 1st August 2005, 06:05 PM

OK, here is what I found from my trade book.

Quote:

trade value: 1,911.05--- brokerage charged: 29.50
trade value: 2,399.10--- brokerage charged: 29.94
trade value: 2,521.15--- brokerage charged: 30.10 (*)
trade value: 1,061.05--- brokerage charged: 28.63
(*) - I don't know how this was so

OK, before you say it, I admit that it was dumb on my part to do a trade of value Rs. 1000. Looks like for Rs. 1000 trade, one would pay 5% as a brokerage charge (on buy+sell), so one would not be covered if the stock does not go up by 5% on any such trades.

Anyway, I still look forward for your comments on the original post.

trader9 · #3 1st August 2005, 06:36 PM

Hi!
The minimum brokerage charged is Rs. 25
If total brokerage on trades is less than Rs. 25 then Rs.25 will be debited.

Regards!

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